South Africa is rushing to submit an “enhanced” trade proposal in a last-ditch effort to avoid a looming 30% tariff from the United States, Trade Minister Parks Tau said on Thursday, as reported by Reuters.
The tariff is set to take effect on Friday and could have severe consequences for South Africa’s economy.
Speaking on South Africa’s 702 radio, Tau said the country had already submitted a proposed trade deal to the Trump administration in May, with a revised version sent in June, but had yet to receive a response. “We’re having to navigate a last-minute proposal that’s enhanced from the proposal that we had initially given,” he said. “And to tell the truth, it’s wait and see.”
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The August 1 deadline has created anxiety in South Africa, where the central bank governor warned that a 30% tariff could put 100,000 jobs at risk, especially in the agriculture and automotive sectors.
The U.S. is South Africa’s second-largest bilateral trading partner after China, importing South African products such as cars, manufactured goods, citrus fruits, and wine.
Tau said discussions with U.S. officials took place on Wednesday night, involving both the U.S. embassy in Pretoria and representatives from the U.S. Trade Representative’s office.
“They (said) they would encourage us to resubmit our proposal, possibly an enhanced proposal, to the United States government,” Tau noted.
Complicating matters are U.S. concerns over South Africa’s domestic affirmative action policies.
A top South African diplomat said earlier in the week that Washington’s objections to the country’s Black Economic Empowerment (BEE) policies, aimed at addressing the legacy of racial inequality, have made reaching a trade agreement more difficult.
Relations have also been strained by South Africa’s decision to bring a genocide case against Israel at the World Court, an action strongly opposed by both Israel and the United States.
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Image Credit: The Africa Report
